Free, localized data encryption solutions for mobile storage devices should not be used in place of managed, enterprise-wide solutions. Problems concerning manageability and data recovery dictate that the hidden costs outweigh the cost savings in the purchase price. Instead, enterprise-wide solutions should be used to enforce appropriate usage and ensure data recovery.

The Allure of Free, Localized Solutions

Data stored on mobile storage devices must be encrypted and password protected in case a device is lost or stolen. In light of this, smaller enterprises may be tempted to seek free solutions to help protect enterprise data stored on portable devices.

The allure behind solutions such as TrueCrypt is that they are simple to use. These programs can be downloaded for free, and require almost no additional set-up. The user simply needs to set a password, and the file becomes protected. This hassle-free approach is especially attractive to IT managers who feel they have neither...